U.S Technology Stocks with Strong Growth & Liquidity: Investment Idea of the Day

According to Gartner Inc, global spending on IT and telecom products and
services is expected to grow 3.1% to $3.8 trillion in 2014, following a
marginal growth of 0.4% during 2013. Gartner reports that spending growth
of 6.8% in enterprise software will continue to lead the growth in 2014
versus 5.2% in 2013, while IT services will increase 4.5% in 2014 after
a growth of 1.8% during 2013. According to FactSet, earnings for the technology
companies in the S&P 500 index are expected to grow 9.3% during 2014,
while operating profits are expected to reach 16% of revenues this year.

Ubika Research has shortlisted ten U.S Technology stocks which have appear
to have strong growth in 2014 and are sitting with ample cash on their
books and no debt. Debt free companies with surplus cash have a better
chance of providing superior returns and liquidity. The selected stocks
have a high proportion of cash with respect to their market cap as per
their latest reported quarter. Meanwhile, these stocks are estimated to
record strong growth in sales and earnings during 2014, as per the data
compiled by Bloomberg. Moreover, these stocks are trading at relatively
low forward PE in comparison to the industry average and are expected to
provide high return on equity in 2014. We note that majority of these stocks
have recorded gains during the past three months recording daily average
volumes in excess of 100,000.

Source: Bloomberg



Note: All Cash items are as of Latest Reported Quarter

Company Description:

Support.com Inc (NASDAQ: SPRT) 

Support.com Inc. provides eBusiness infrastructure software. The company’s
software optimizes, automates, and personalizes user support over the Internet.
SupportSoft sells its products and services to corporate information technology
departments, Internet service providers, application service providers,
and support outsourcers.

PDF Solutions Inc (NASDAQ: PDFS)           

PDF Solutions, Inc. provides infrastructure technologies and services
to optimize performance and improve yield of manufactured integrated circuits.
The company provides its services and technologies to integrated device
manufacturers such as Toshiba Corporation and Texas Instruments Incorporated.

Progress Software Corp (NASDAQ: PRGS) 

Progress Software Corporation develops, markets, and distributes application
development, deployment, and integration software to business, industry,
and government worldwide. The company’s products include databases, application
servers, messaging servers, and development tools for Internet/Web, extranet,
and intranet applications as well as for client/server and host applications.

Sapient Corp (NASDAQ: SAPE)      

Sapient Corporation provides integrated management consulting services,
Internet commerce solutions, and systems implementation services. The company’s
services include design and development of Internet commerce solutions,
implementation and integration of packaged software solutions, design and
development of custom software solutions, and production support.

Zix Corp (NASDAQ: ZIXI)     

Zix Corporation provides hosted internet applications in SaaS models that
require high security. Two core businesses: Email Encryption for regulatory
compliance and protecting sensitive communications and e-Prescribing, which
provides real-time access to critical information at the point-of-care
to enhance the electronic transmission of prescriptions directly to pharmacies.

Silicon Image Inc (NASDAQ: SIMG)

Silicon Image, Inc. designs, develops, and markets semiconductor solutions
for applications that require high-bandwidth, integrated solutions for
high-speed data communications. The company’s products enable host systems
to transmit digital video data and enable displays to receive and manipulate
digital video data.

MICROS Systems Inc (NASDAQ: MCRS)      

MICROS Systems, Inc. designs, manufactures, markets, and services enterprise
information solutions for the global hospitality industry. The company’s
solutions consist of application specific software and hardware systems,
supplemented by services.  The hospitality industry includes lodging,
table service restaurants, quick service restaurants, and entertainment
venues.

Brooks Automation Inc (NASDAQ: BRKS)   

Brooks Automation, Inc. delivers automation solutions to the global semiconductor
and related industries. The company’s hardware, factory/tool management
software, and professional services can manage every wafer, reticle, and
data movement in the Fab.  Brooks helps semiconductor manufacturers
optimize throughput, yield, and cost reduction.

Extreme Networks Inc (NASDAQ: EXTR)     

Extreme Networks, Inc. provides switching solutions for local area networks
(LAN). The company uses its custom ASICs and a common hardware, software,
and management architecture to offer customers LAN solutions.

Calix Inc (NYSE: CALX)      

Calix, Inc. provides communications access systems and software that enable
communications service providers, or CSPs, to connect to their residential
and business subscribers. The company’s products encompass its multiservice,
multiprotocol access platform and its Ethernet service access platforms.